In 1925, Hollywood had no more than 12 reputable agencies. A decade later, that number increased nearly seven-fold following the explosion of the movie industry.

Smaller production companies, to increase profits and establish themselves as industry leaders, merged to create eight major corporations. This new approach presented an opportunity for booking agents to serve as middlemen between these companies and actors, driven by the attractiveness and necessity of having someone represent the latter’s interests.

Fast forward to today, thousands of booking agencies have popped up globally, sourcing gigs not just for actors but music artists, models, and professional athletes. Like a caddy to a golfer or a trainer in a fighter’s corner, booking agents steer talents toward building their brands and making a big splash in their respective industries.

In music, agents are responsible for negotiating bookings and handling the logistical operations that make a show happen, empowering artists to do what they do best: bring the house down.

Although the dawn of the digital age has raised questions about the relevance of agents in the industry, it also prompts reflection on how they could tap into the power of social media, digital distribution, and streaming platforms to amplify their value and effectiveness to their clients. After all, the goal remains the same - to assist artists in reaching new audiences and maximizing their income streams.

Yet, the reality is that streaming platforms just do not pay as much as they were projected to. In 2020, Business Insider reported that Spotify’s payment to artists was “as little as US$0.0033 per stream”, translating to 250 streams to earn a dollar.

Despite reaching 97 million users, reports have also indicated a staggering decline in paid music streaming subscriptions in the US, plummeting from 28.8% in 2019 to a mere 5.7% in 2023. To make matters worse, physical sales of music have also surpassed streaming, with the former experiencing a 10.5% rise in the US and 13.4% globally, compared to the latter’s 8.6% and 10.4%.

Based on such troubling statistics, it is safe to say that live performances remain the primary source of monetary value for artists, consequently preserving the demand for booking agents.

The Challenges and Pitfalls of Booking Artists for Live Events

Traditionally, agents have focused on securing as many gigs as possible for their clients, often ignoring the importance of aligning with event concepts.

This plunges newcomers to the live events industry into treacherous waters, leaving them vulnerable to offering ridiculous sums in a bid to secure marquee artists. Unfortunately, such gambles do not often pay off, with shows either not happening or losing popularity after just one time.

Coupled with the absence of standardized data to justify artist fee structures, the live events industry has struggled to overcome a fundamental challenge: a lack of a universal benchmark due to diversity among live acts.

This superior bargaining position, which agents are well aware of, puts them in a position to auction off artists under their management to the highest bidder or charge a significantly lower fee to affiliated agencies.

Putting Power Back in the Hands of the Event Organizer

Thankfully, Web3 allows event organizers to reclaim control over this crucial aspect of executing a successful show.

The technology allows organizers to lean on fan feedback mechanisms and smart contracts to facilitate direct transactions with artists based on genuine connections rather than financial incentives.

For protection, blockchain technology can be implemented, decreasing fraud and expediting each transaction.

Empowering Booking Agents to Find Purpose with Web3

However, this paradigm shift does not necessarily mean that booking agents will be rendered useless. Agents, too, should leverage Web3 to:

• Identify suitable markets to grow their clients’ fan base

• Uphold and protect their clients’ personal brands

• Access data that helps optimize client bookings

By taking this approach, not only will booking agents be incentivized handsomely, but make themselves invaluable players in the entertainment industry.

Likewise, Web3 also frees the artists to make music that resonates with their fans. James Blake’s recent partnership with Vault - although not based on the technology - is an example of this, giving fans access to unreleased music, direct updates on upcoming releases, and the latest announcements.

Similarly, All Access Anonymous will allow artists to regain control over their music careers and event organizers alike to curate meaningful experiences. Furthermore, it prioritizes the fans, tailoring each event around them with hyper-engagement perks such as exclusive meet-and-greets and limited edition paraphernalia reminiscent of La Liga Golazos and NBA Top Shot.

What Does This Mean for Booking Agents Unfamiliar with Web3?

If a booking agent is unfamiliar with Web3, they may find it hard to navigate the ever-changing landscape of the entertainment industry. Notably, it could lead to missed opportunities, as the technology offers new avenues for exposure, collaboration, and revenue generation.

While fraudulent practices and the profiteering actions of some unscrupulous agents have cast a shadow over the profession, Web3 stands out as a beacon of transparency and empowerment, enabling others to change the narrative and position booking agents as pillars of trust and integrity in the industry.